1. The Columbian Exchange María Sanz

2. Columbian Exchange
Columbus traveled back and forth from Europe to the Americas.
On these expeditions he brought goods to and from the countries.
Columbus began a global exchange that would affect trade, because of this exchange began we call it the Columbian Exchange

3. Goods were exchanged People Plants Animals Technology Diseases
What is the Old World and what is the New World?

4. From The Old World Europe Africa Asia Wheat Onions Apples Carrots
Horses
Cattle
Africa
Radishes
Watermelon
Coffee
Asia
Rice
Sugarcane
Mangoes
** How would horses impact the New World?

5. From The New World North America Central America South America
Sunflowers
Corn (Mexico)
Avocadoes
Central America
Peppers
Beans
Cocoa
South America
Potatoes
Tomatoes
Peanuts
** Why would potatoes be important in Europe?

6. Impact on Population
By the 1700s, corn, potatoes, beans and tomatoes were contributing to population growth
People began migrating to the Americas as well
– Why would people want to move to the Americas?

7. Continued..
European diseases (like small pox) killed Native Americans.
Shortage of labor to grow cash crops led to the use of African slaves.
European plantation system in the Caribbean and the Americas destroyed indigenous economics and damaged the environment.

8. The Commercial Revolution marked an important step in Europe from
local economies to a global economy.

9. Mercantilism
Mercantilism was the belief that a nation’s power depended on the ownership of gold and silver.
In order to acquire gold and silver, European countries established overseas colonies.
Colonies provided gold and silver.

10. Mercantilists believed that a country’s
wealth was based on the amount of
gold and silver it acquired.

11. Mother Countries and Colonies
Mother countries were conquerors.
The conquered land was a colony.
In addition to mining for gold and silver, Mother countries imported natural resources or raw materials from their colonies and exported finished goods.

12. Mother countries imported cheap raw materials like cotton and
exported more expensive finished
goods like shirts.

13. Capitalism
Merchants and bankers established the foundations for capitalism.
In a capitalist system, business owners risk their money to start new businesses hoping to make profits.
Individuals formed joint-stock companies.

14. A stock certificate represents partial ownership in a business.

15. Joint Stock Companies
A Joint stock company is a privately owned company that sells stock or partial ownership in the company to investors.
Investors risk their capital or money when they purchase stock.
If the company is successful, the investor receives his share of the profits.

16. Joint stock companies were sometimes
given charters to establish settlements
in the “New World”.

17. “Triangular” trade made some continents wealthy while it impoverished
other continents.

18. European
kings
increased
their
wealth and
power
through
conquest
and
colonization.

19. While European Kings and capitalists
increased their wealth, Native American
Indians and Africans were terribly exploited.

20. Questions for Reflection:
Define mercantilism.
How did European nations increase their wealth and power?
Define capitalism.
Why did individuals invest in Joint stock companies?
What was “Triangular” trade?
What was the relationship between a mother country and a colony?

21. Triangular Trade and the Atlantic Slave Trade

22. Atlantic Slave Trade
The Atlantic slave trade was started in the 1500s to fill the need for labor in Spain’s American empire.
Each year, traders shipped thousands of enslaved Africans across the Atlantic to work on tobacco and sugar plantations in the Americas.

23. Atlantic Slave Trade
The slave trade intensified as the demand for slaves increased in the Americas and the demand for luxury goods increased in Africa .

24. Atlantic Slave Trade
The Atlantic slave trade formed one part of a three-legged trade network know as the triangular trade.

25. Destinations of Enslaved Africans
What country imported the most slaves?
Which imported the fewest?

26. The Middle Passage
Hundreds of men, women and children crammed on one vessel.
Few of the Africans who resisted lived to see the end of their journey

27. Impact of the Slave Trade
By the 1800s, an estimated 11 million enslaved Africans had reached the Americas..
The slave trade caused the decline of some African states..
New African states arose whose way of life depended on the slave trade.

28. Commercial Revolution
Opening trade with Asia, Africa and America changed Europe’s economy:
Inflation caused by
growth in population = increase in demand for goods and services
because goods were scarce, sellers could raise their prices
by mid-1500s silver and gold were everywhere and rulers were using it to make coins – thus an increased amount of money in circulation

29. Growth of Capitalism
Expanded trade and push for overseas empires stimulated the growth of capitalism
entrepreneurs and capitalists wanted more money
they made up a new business class devoted to making profits
this changed the local European economy into an international trading system

30. Mercantilism Basic Ideas behind mercantilism:
Nation’s wealth based on its gold and silver treasure
Must export more goods than imported
Colonies existed for benefit of European countries
Provide raw materials and resources
Provide a market for selling manufactured goods
Colonies could ONLY buy from parent country

31. Summary of Commercial Revolution
How did the Commercial Revolution change Europe’s economy?
Prices rose (inflation)
A new business class (entrepreneurs) was created ….capitalism
The goal of European economies changes from agrarian base to CASH based (mercantilism)

32. Effects on Ordinary People
Nobility/Upper Class
Wealth came from land, not cash
Could not raise money to pay higher costs for luxury goods
Middle Class (Merchants)
Investments led to increased wealth
Grew powerful in cities
Enjoyed comfortable living

33. Effects on Ordinary People
Peasants/Laborers/Lower Class
Wages did not keep up with inflation
Peasants reluctant to grow new crops
City laborers forced to live in poverty